Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

Zoopla: Stamp Duty Hits Far Fewer First-Time Buyers in North Than South

Zoopla’s latest analysis reveals a stark regional divide in stamp duty payments among first-time buyers, with far fewer in the North of England paying the tax compared to those in the South. The findings highlight the impact of regional house price differences on the costs faced by buyers and homemovers.

According to Zoopla, just one in ten first-time buyers in the North of England pay stamp duty, while in London, eight in ten face a stamp duty bill. In the North East, only 2.1% of first-time buyers pay stamp duty, reflecting lower property prices in the region.

Most first-time buyers in Northern England purchase homes below the £300,000 threshold, meaning they are exempt from stamp duty. In Yorkshire and the Humber, 3.8% of first-time buyers pay stamp duty; in the North West, it is 6.2%; and in the West Midlands, 9.3%.

In contrast, higher property prices in the South mean more buyers face stamp duty costs. In the South East, where the average home costs £395,000, 51% of first-time buyers pay stamp duty. In the East of England, 52% pay stamp duty, with an average house price of £390,000. In London, 79.2% of first-time buyers pay stamp duty, with a median bill of £8,750.

For first-time buyers in Yorkshire and the Humber, the North West, the West Midlands, and the East Midlands, the median stamp duty bill is £2,500. The South West has the lowest proportion of first-time buyers paying stamp duty among Southern regions, at 21.2%, with a median bill also at £2,500.

The analysis also covers homemovers. In London, where the median homemover asking price is £600,000, 99.7% pay stamp duty, with a median bill of £20,000. In the South East, 96.6% of homemovers pay stamp duty, with a median cost of £11,250. In the North East, 63.5% of homemovers pay stamp duty, with a median bill of £1,500.

Zoopla notes that homemovers account for six in every ten property purchases. The report suggests that high stamp duty costs can affect the supply of starter homes, as some moves do not happen due to the additional expense.

These findings are relevant for letting agents and inventory clerks monitoring regional market activity and the movement of buyers and homemovers across England.